The founder and CEO of real estate-based private equity firm Woodfine Capital Projects will speak directly to the Relex community and other interested parties this Sunday at 10 a.m. EST on a public conference call. Interested parties must CLICK HERE TO SIGN-UP (https://goo.gl/forms/DhrxZaFzxJZURLcx2).
Peter Woodfine brings over 30 years of experience in private equity and real estate development to his portfolio of offerings available for crowdfunding on the Relex Capital blockchain-based investment platform.
The first projects listed on the platform are located in Vancouver, part of Woodfine Professional Centres Limited Partnership Canada. Relex holds an exclusive $50 allotment agreement with Woodfine Capital Projects.
The need for Alternative investments
Investors have become increasingly interested in investments outside of the stock market, particularly after recession of 2008, particularly looking for “Alternative investments” to grow their capital over the long term.
Alternative investments have long been exclusive to a small group of institutional investors, but with a partnership that combines Woodfine Capital Projects with the legal crowdfunding of up to $50 million USD from Relex, these investments are now accessible to people outside of that elite group.
Woodfine Capital Products offers limited partnership (LP) real estate units. Real estate, like other Alternative class investments, generate revenue that can then be channeled into other investments or be used to take on debt for further development; this concept of leverage is a defining feature of Alternative investment structures. Woodfine Capital Project’s public non-listed units combine the ability to raise transferable equity and create leverage through first secured debentures.
To protect against overleveraging, the Woodfine LPs follow the same standards as commercial banks, restricting borrowing to a 1.2 interest coverage ratio and 100% of the LP’s development costs. The Woodfine LP thus becomes a conduit for funding a series of real estate projects, allowing developers to leverage the profit from each project to fund future development without having to sell.
With $50 million in investment capital, Woodfine LPs can potentially issue up to $250 million in first secured debentures over the development cycle before hitting the borrowing restrictions. In other words, they can offer 5x leverage on investment capital rather than the typical 3x leverage offered by regulated banking. This extra leverage puts real returns back into investors’ pockets, providing a significant advantage over the long term. The funds offer 3x on exit or 20% annual distributions, with freely transferable units.
If you’re interested in attending the conference call with Peter Woodfine, you must CLICK HERE TO SIGN-UP (https://goo.gl/forms/DhrxZaFzxJZURLcx2).
Woodfine Capital Projects professionalism and transparency
Reporting:
Audited year-end financial statements
Quarterly financials and MD&A posted on SEDAR/EDGAR
Material changes posted on SEDAR/EDGAR within 10 days of an event
Liquidity:
Freely transferable units, with ISIN and CUSIP numbers
Units held on balance sheets not as a liability, as in the case of traditional private equity, but as an asset
Right to pledge units as security
Unitholder rights and protection:
Restrictions on lending and borrowing
Fixed gross funded value
Piggyback and takeover rights for the unitholders
Independent oversight:
Requirement that a majority of the general partner’s board of directors be independent
Right to terminate and replace the general partner
Strict qualified investment guidelines:
Qualified investments must be approved by a majority of independent directors of the general partner
Strict banking controls:
All funds must be kept in cash or cash equivalents, with two signatures required for transactions, one being an independent member of the board
How does Relex help?
With a maximum crowdfunding ceiling of $50 million dollars, Relex is one of the only crowdfunding entities in the world that can raise the levels of capital needed for larger real estate development projects, either cryptocurrency based or otherwise.
Relex’s special crowdfunding privileges were made possible when it was officially approved and incorporated as a Joint Stock Company in the Orsha Special Economic Zone under Decree 506 in Belarus.
While Relex had initially sought crowdfunding approval from FINRA in the United States, it was stymied by a maximum capital raise of about $1 million USD and restrictive red tape.
Additionally, since Reg CF’s approval in 2016, which allowed crowdfunding to begin, only 135.3 million dollars in total have been raised cumulatively by ALL of the 44 companies, as of the third quarter 2018.
What has led to such a small total raise? FINRA has incredibly stringent crowdfunding rules, so strict that they undermined the utilization of Reg CF. For instance, each company is only able to raise $1.07 million per project. Additionally, investors who make under $107,000 a year can invest, at maximum, $2,200.
Nevertheless, we look at FINRA as the global standard of compliance, and we want to meet their standards and receive FINRA approval in the future. As we continue to try for their approval, we can also hold ourselves to their standards of compliance while offering opportunities that far surpass what we would have been capable of in home soil.
Aside from a comparatively high crowdfunding cap, as a company that deals in cryptocurrency, Relex also makes the process of global foreign direct investment via crowdfunding more simple by homogenizing the currency used — only RLX, our proprietary ERC-20 token, is accepted.
Blockchain is seen as one of the solutions to transparency issues, facilitating easy tracking and trustless transactions. Real estate, one of the industries that benefits most from high transparency, has a lot to gain from the additional transparency of the blockchain.
If you’re interested in attending the conference call with Peter Woodfine, you must CLICK HERE TO SIGN-UP (https://goo.gl/forms/DhrxZaFzxJZURLcx2).